Pocono News Section

Gov't Offers $8,000 Tax Credit To Homebuyers

Gov't Offers $8,000 Tax Credit To Homebuyers - Thursday, March 5, 2009 at 11:29PM EST

We've all heard so much bad economic news, many folks are afraid to buy homes. But those in the real estate industry say, this could actually be a great time to buy. 8 thousand dollars. That's how much the feds are waving in the faces of first time homebuyers. It's part of an incentive to encourage home buying and stimulate the economy.
Real estate broker Bob Kopec says he thinks he knows why he's having trouble selling this Larksville ranch. “I'm going to blame it on the news media. They're scaring the buyers." Kopec says news video of mass foreclosures in other states is frightening local folks away from buying. “Now is a perfect time to buy. He says because much of our region didn't experience the housing boom three years ago, we're not experiencing the worst of the bust. Housing prices here aren't dropping like they are elsewhere. "There's really no bottom in our area."

Another reason to buy --the economic stimulus package the president signed last month offers an 8 thousand tax credit to first time homebuyers. That's anyone who hasn't owned a home in the past three years. Eric McCabe of McCabe Mortgage Group in Kingston says "its a true tax credit that does not have to be repaid." McCabe says it's an unprecedented incentive that can leave buyers with more money in their pockets. “Somebody whose buying a 200 thousand dollar home, putting seven thousand down gets all of that seven thousand back in tax credit and another thousand for drapes."

McCabe is also trying to dispel myths that buyers must have spotless credit and huge down payments. He says a 620 credit score and 3 and a half percent down can make you eligible for a government-insured mortgage. Its information Kopec hopes will jumpstart the housing market and lead to a long-awaited sale.

There are some income requirements to get that 8 thousand dollar credit. For more information on the tax credit, go to .

If you're uncertain about your job security you may not want to buy a home now.